AEDC Strategizes to Reverse Anchorage Economic Decline
Jon Bittner, who returned to Anchorage Economic Development Corporation as its president and CEO in March, presented the Business Confidence Index survey and other reports.
Photo Credit: Alaska Business
For his first presentation as CEO and president of the Anchorage Economic Development Corporation (AEDC), Jon Bittner had to be the bearer of not-entirely-good news. The city’s working-age population continues to shrink, consumer confidence is near an all-time low, economic recovery lags the state overall, and predictions of an energy shortage this winter aren’t helping.
In response, AEDC is launching the Community Economic Development Strategy (CEDS). In cooperation with the Municipality of Anchorage, the nonprofit gathered a panel of sixteen business and community leaders to brainstorm solutions to the city’s challenges.
Change the Narrative
Bittner presented AEDC’s outlook report to a luncheon at the Dena’ina Civic and Convention Center packed with 1,300 attendees. He noted that one of his predecessors, Bill Popp, was seated nearby as backup.
Popp had led various AEDC initiatives a lot like how Bittner described CEDS. The new effort is an alliance of businesses, nonprofits, and individuals that will spend the next six months holding roundtable discussions to collect data and compile achievable ideas. “We’re going to use it to craft a five-year strategic vision for Anchorage, and we’re going to spend the next half-decade implementing it, along with our partners,” Bittner said. “We’re going to change the narrative about what this city is and show people that the true strength of Alaska’s largest city is its small-town community vibes.”
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August 2026
Shortly before Bittner announced CEDS, Mayor Suzanne LaFrance foreshadowed the initiative in her State of the City address. LaFrance noted, “Public infrastructure, healthcare, housing, tourism, national defense, and local business: nearly every sector is leaning in. At the municipality, there are only so many levers that we can pull to boost our local economy, but we’re doing everything we can to bring public investment to the table.”
One problem gripping the mayor’s attention is a forecast of a natural gas shortage, which could result in brownouts if next winter is as cold as the last. LaFrance stated, “My team is tackling planning for a waste-to-energy plant, conducting an energy audit, and adding more solar panels. We have plenty of work ahead.”
A warmer winter can’t help the root cause of business pessimism: a shrinking labor pool. Job growth is slowing, even though it has yet to fully recover from the 2014 oil price recession. Anchorage is down by 3.4 percent, whereas Alaska overall has 0.5 percent to go. Bittner observed, “Something in Anchorage is holding us back from this economic recovery overall.”
The quarterly consumer confidence index by Alaska Survey Research stands at 40.5, which Bittner described as “not great.” The figure is barely above the previous record low during the depths of the COVID-19 pandemic. “But during the COVID pandemic, it was pretty easy to figure out why people were unhappy,” Bittner noted.
A separate survey by AEDC found a plurality of businesses named homelessness as a priority, far ahead of housing generally.
Bittner further reported that surveys show personal views of the economy are more robust, and 70 percent of businesses anticipate growth of their own. To explain this divergence, Bittner blamed social media. As he put it, “They prioritize and incentivize posts and communication that inspire two things: anger and fear. A post about a cute puppy doesn’t go nearly as viral as a post about someone doing something mean to a cute puppydog. The same logic applies to posts about the economy, the community, and other social ills.”
Bittner added that perception wasn’t the entire explanation; higher costs are a palpable factor. The keynote speaker for the AEDC luncheon, Federal Reserve Governor Lisa D. Cook, corroborated Bittner’s observation. She attributed pessimism to uncertainty about AI-related technology and infrastructure, compounded inflation, and rising costs for housing, education and healthcare limiting middle-class mobility. Cook said, “Achieving price stability will help narrow the disconnect that many Alaskans and many Americans feel when they assess their personal, less sanguine expectations for the economy, relative to more sanguine readings for growth and development.”
Celebrate Progress
Mayor Suzanne LaFrance presented her State of the City address to the Anchorage Economic Development Corporation annual luncheon.
Photo Credit: Alaska Business
Even the Anchorage economy has some sanguine readings. “While we do face some real problems,” LaFrance said, “it’s important to recognize and celebrate progress.” The mayor pointed to building projects at the city-owned port, quality-of-life improvements in the Downtown area, and private investments by Alaska Native Medical Center and Southcentral Foundation.
Furthermore, the 330 housing units permitted so far in 2026 exceeds the total for all of 2024 and is on track to outpace 2025 as well. Permit valuations are already higher than last year, representing an additional $75 million committed to the Anchorage economy compared to last year’s record-setting pace.
LaFrance and Bittner both pointed to military investment expected at Joint Base Elmendorf-Richardson, which will drive the city’s economy for the next five years while also complicating the mayor’s goal of adding 10,000 homes in ten years. Off-base housing would need about 2,500 by itself.
Bittner reported one definite bright spot in Anchorage’s demographic picture. The age bracket just below the working-age adult category is growing. “Anchorage actually added growth in those demographic ages while the state lost ground,” he noted, which led to the questions: “How do we keep them here? How do we get more of them?”
Anchorage’s traditional role as a hub for retail and finance is shifting, Bittner said. Transport is now dominating job growth. “Between the Ted Stevens Anchorage International Airport and Don Young Port of Alaska, maybe we should name some more things after politicians,” Bittner quipped. “We’re moving more toward a logistics and healthcare focused economy.”
